Lucas' (1967) adjustment costs model and Kydland and Prescott's (1982) time-to-build model induce mutually exclusive time-series properties that can be recovered from data. This paper investigates three variants of a theoretical model which give insight into the parameter restrictions implied by...

This paper is a first attempt to look into the issue of the effect of leverage and adjustment costs on various measures of corporate performance for 374 non-financial firms listed on Karachi Stock Exchange of Pakistan. The Arellano and Bond dynamic panel data estimation technique (a variant of...

This paper investigates how firms dynamically adjust their use of capital, labor, energy, and materials when there are both smooth and lumpy adjustment possibilities and interrelation among adjustments. The Colombian Annual Census of Manufacturing provides evidence of these kinds of adjustment....

We show that full risk sharing may not be at odd with the idea that changes in regional consumption display error-correcting dynamics, in line with the idea that information and transaction costs stemming from interregional portfolio diversification and labor movements induced by permanent...

In this paper, we consider how genuine savings would be altered if the adjustment costs of capitals are taken into account in the stylized capitalresource model. It is shown that, in order to derive the modified genuine savings, through shadow prices, the original genuine savings have to be...

This paper explores the impact of trade liberalization on manufacturing employment and wages over a period 1993-2006, a period coinciding with significant reduction in trade barriers and rising unemployment. Despite increasing import penetration, the paper shows that employment has increased...

A neoclassical factor demand model for structures, equipment and labour is analyzed. It incorporates a variety of dynamic specifications, such as a multi-period time-to-build for structures, internal adjustment costs for each production factor, and external investment adjustment costs....

The present paper is an analysis of electricity on the Mexican context as an input provided by the government. The approach consists in evaluating the effect on the manufacturing sector of an improvement in efficiency on electricity production and distribution. Noteworthy, the improvement is...

The agricultural sector plays an important and a vital role in achieving the economic growth, furthermore, the labor input is considered one of the most important inputs in the economy, especially in the agricultural sector, which contribute in increasing production. Achieving the economic...

Human labor input is considered as one of the most important inputs in the economy, especially in the agricultural sector, that contributes in increasing production and employment, so the cycle of economic development must be pushed to achieve the most economic efficiency from the agricultural...